Competition Worries Snag Verizon Deal on Airwaves

By

Amy Schatz And

Thomas Catan

July 12, 2012 7:21 p.m. ET

WASHINGTON—The Justice Department is holding up Verizon Wireless's $3.9 billion deal to acquire cable-company airwaves over concerns a related agreement will hurt competition for broadband Internet service, according to people familiar with the matter.

After a set of divestitures Verizon Wireless has promised, the Federal Communications Commission essentially is prepared to sign off on an agreement by cable companies to transfer airwaves to Verizon that it can use in its new LTE wireless network, the people said. The...